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Washington, D.C., July 22, 2002—
The International Finance Corporation (IFC), the private sector development arm of the World Bank Group, will invest US$9 million in Ferrocarril Transandino S.A. (FTA) in Peru, to support the modernization of the country’s railway network.
In 1999, the government of Peru privatized the state-owned railway company Empresa Nacional de Ferrocarriles S.A. Under a thirty-year concession agreement, the fixed assets and rolling stock of the southern line that runs 689 km from Matarani to Cusco and of the southeastern line that runs 111 km from Cusco to Machu Picchu, were transferred to the new private company Ferrocarril Transandino SA (FTA).
Declan Duff, IFC’s Director of the Infrastructure Department, said: “Privatization of this system has a major double impact. Not only is the company providing safe and efficient rail transport over steep grades to Machu Picchu, one of the most precious tourist sites in the world. It is also bringing down costs for exporters of minerals and agricultural products and greatly improving Peru’s competitiveness. We are proud to be supporting it.”
FTA is owned by Sea Containers Ltd and Peruval Corp. S.A. and manages the infrastructure of the Southern and Southeastern railway networks in Peru. Orient-Express Hotels Ltd (a majority owned subsidiary of Sea Containers Ltd) and Peruval Corp. S.A. also own and manage Perurail S.A. the railway operating company for both lines.
IFC’s mission (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC’s committed portfolio at the end of FY01 was $14.3 billion.
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